Bribery trial starts for ex-HealthSouth officials

The trial of two former HealthSouth Corp. executives is under way on charges that they participated in a bribery scheme to win for HealthSouth a five-year, $250 million contract to manage a rehabilitation hospital in Riyadh, Saudi Arabia. Testimony began last week in U.S. District Court, Birmingham, Ala., in the trial of Robert Thomson, a former president and chief operating officer of HealthSouth's inpatient division, and James Reilly, a former group vice president of legal services. Two other former HealthSouth executives have pleaded guilty in the case. Vincent Nico, a former vice president, is scheduled to be sentenced May 26 on two charges of wire fraud. He has forfeited $1 million and faces up to 20 years in prison and a $250,000 fine. Thomas Carman, a former executive vice president, faces up to five years in prison and a $250,000 fine after pleading guilty to one charge of making false statements to federal authorities. His sentencing has not been rescheduled after being postponed earlier. -- by Joseph Mantone